Los Angeles daily herald., 1887-08-04
E. WHEAT FUTURES.
Go Down with a Crash at
San Francisco.
THE BULLS BADLY CINCHED
Dresbach, the Nevada Bank Rep
resentative, on the Wrong
Side of the Deal.

| bluc vi Tile Dtdls
Associated Press Dispatches to the HERALD.
SAN Francisco, August 3.-The big
bull deal in wheat collapsed here to-
day. There had been mutterings of
trouble for several days, and the out
come was not entirely unexpected.
Top prices were reached last Monday,
when the bulls offered 81 III. per
Genital for wheat. Yesterday the
market dropped to 81 IA, and this
made the price 21s cents per pound in
San Francisco against Ia cents in
Chicago, IL in New Yosk and 6-10
in Liverpool. The collapse Of the
deal was not attended by the usual
excitement, as all the sessions of the
Call Board were adjourned under a
resolution adopted by the Board of
Directors and posted on the doors of
the Exchange, the reason given being
o. desire to avert the threatened panic.
This step was not altogether unan-
ticipated, and feeling of relief was
experienced by both parties, who have
been strained to the utmost during
the past few days. No failures were
reported up to a late hour this after
noon, and it is believed that all deals
will be compromised so as toavert any
serious disasters on the street.
HEAVY STOCK ON HAND.
Two of chief bull traders were
William Dresbach and John Rosen-
field, but the theory is accepted that
they represented other interests. They
are known to be responsible for so, 900
tons of wheat held under various OPP
tions for delivery during this year. and
these contracts now stand at 2. 10 cents
per GENITAL. They made an offer to
settle on the following terms: To
settle and pay at once 10 cents per
Genital as soon as the settlers have the
wheat ready for delivery and tender
it. Further, to pay 25 cents GENITAL
which would leave the price standing
with balance due of $1.70. This they
propose to accept, and pay for
a in September, d in October,
4 in November and the final 4 in
December, They also propose to pay
the sellers interest at the rate of 7 per
cent. per annum on all deferred pay
ments together with the customary
storage and insurance charges. To
secure a margin OF 35 cents per ton,
they propose to deposit ample security
in the form of wheat with the board
of directors, IN other words; they
asked the sellers to carry wheat in
their interest and pay them for doing
so. The total amount of wheat the
longs have been shouldering is var
iously computed, but as an evidence
of the magnitude of the deal, it is
stated that it has required $4,000, 900
to carry the grain already at Liver
pool and on way, together with great
quantity in store in the warehouses in
the state.
THE LOCAL BANKS
matter and steadily refused to inter-
fere, content to loan their customers
money at liberal rates. The collateral
put up by the ring for the advances
has been mostly certificates of wheat
on hand, and an interesting question
of the future will be the ownership of
one half of the hypothecated stock.
The action taken by the Board of Di-
rectors in stopping all the Board ses-
sions is deemed very remarkable, but
that it averted a panic is conceded.
Dresbach's proposition was accepted
this afternoon, and the virtual result
is that spectators and brokers, shorts
included, have agreed to keep their
hands off the market for the time be-
ing, and both bulls and bears have
backed down. Money squeezed out
of the shorts on margins will be
refunded and they will lose nothing.
On the other hand the rings wheat
has substantially cost over $l.65, and
they will lose the difference between
that and the actual market price.
Dresbach had the shorts so badly
scared that they were willing to get
out without making anything. Many
OF the shorts came out ahead on settle
ment, but apart from the loss inflicted
on the bull clique proper no firm losses
are mentioned in excess of $50, 900.
The session of the Call Board has been
postponed indefinitely, and the actual
market price of wheat cannot be de-
termined for several days, although
the nominal figure is $1.75.
INTERESTED CREDITORS.
Among the creditors heavily inter-
ested are said to be George w. Nc
Near, Eppinger & Co., Adler & Co.,
f. HI. Kowalsky, j. Bonny, Goldfish,
Cohen d Co. and N. Cohen & Co. G.
b. Stone, when spoken to, said that
he thought there would hardly be any
loss to speak OF. "Dresbach and Ro-
senfeld,' he said, "5ought at all
prices. In the early part of the sea-
son they got wheat very low and the
average price will not exceed $1.70,
and their losses will be counterbal-
anced by their profits"
"What do their outstanding con-
tracts aggregate? ?"
EXACTLY 100000 tons," answered
Mr.. Stone, taking memorandum
book out of his pocket and glancing
at it.
"The losses, if any," he continued,
Ewil1 he among thp small shiDDprS